Parliament has passed Bill No. 26 of 2024: Insurance which seeks to reform the country’s insurance industry. The Bill repeals and replaces the outdated Insurance Act, addressing emerging issues and promoting a safer, more transparent industry.
The bill will also provide guidelines for licensing, authorizing and supervising key players in the insurance industry.
Speaking after the passing of the bill, Minister of Finance and Economic Affairs Simplex Chithyola Banda said the bill is important as It provides a comprehensive framework for the conduct of general insurance and life insurance businesses, including licensing, authorisation, and supervision of key players.
“The Bill introduces several key provisions, including the development of corporate governance and risk management frameworks, “fit and proper” requirements for directors and managers, and operational requirements for insurers.
“It also provides for the payment and collection of premiums, supervision of insurance entities, and investment by insurers,” he explained.
In his remarks, DPP representative Shadrick Namalomba said the bill lacks sufficient details and clear definitions.
According to Namalomba, there is a need for clarity on when the liquidation process can be initiated.
In the event of non-compliance, the Bill provides for statutory management, reorganisation, and dissolution of insurance entities.
Additionally, it establishes a disaster fund to support firefighting services, disaster rescue operations, and other related services.
